Quiz-summary

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading...

You must sign in or sign up to start the quiz.

You have to finish following quiz, to start this quiz:

Results

0 of 5 questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 points, (0)

Categories

Not categorized0%

1

2

3

4

5

Answered

Review

Question 1 of 5

1. Question

Which of the following is (or are) typically contained in any definition of economic capital?

A reference to additional assets to cover unexpected events

A reference to the amount needed to cover unexpected events to a specified risk tolerance

A reference to the time horizon over which unexpected events are considered

A reference to the party liable for any unexpected losses

A reference to the economic conditions in place

Correct

Incorrect

Question 2 of 5

2. Question

Which one of the following statements about the factor tables used to calculate economic capital is correct?

They are essentially scenario-based stress tests

They are used mainly by regulators

They involve the production of a large number of simulated results

All insurance companies are required to produce such tables under Solvency II

They are usually updated on a daily basis

Correct

They are used mainly by regulators

Incorrect

Question 3 of 5

3. Question

Which of the following is (or are) management actions that might be allowed for in an economic capital model?

Changes to investment strategy in response to performance

Levels of sales

Levels of reinsurance

Market rates of interest

Premium rates

Correct

Incorrect

Question 4 of 5

4. Question

Which one of the following is defined as the economic capital multiplied by the excess of the risk-adjusted return on capital over the hurdle rate of return?

Return on investment

Excess economic capital

Shareholder value added

Shareholder value

Economic income created

Correct

Incorrect

Question 5 of 5

5. Question

If, under the Euler capital allocation principle, the marginal contribution to risk is the expected loss from that line of business given that the total loss is greater than the value at risk at a particular level of confidence, which one of the following risk measures is being used?